A mutual fund is an investment vehicle that pools money from multiple investors and allocates it across stocks, bonds, government securities, and money market instruments.
As India’s one-stop destination for fixed returns, Grip now offers debt mutual funds that invest in a diversified pool of government bonds, corporate bonds and other fixed-income securities which is ideal for earning stable and fixed returns.
These funds are actively managed by leading asset management companies (AMC) like HDFC, ICICI Prudential, Nippon Life.
Historical returns of these mutual funds have been 7-12% as compared to 3-7% from Bank FDs.
You can invest either a lump sum amount or start a SIP. Mutual Funds allow easy exit with an option to redeem anytime with no lock-in period.
REASON AND BENEFITS
Potential for Higher Returns than FDs
Debt mutual funds made 25-50% higher post-tax returns compared to Bank Fixed Deposits.
Low Risk Through Diversification
These funds invest across a diverse mix of government bonds, corporate bonds, and other fixed-return securities with an average rating of AA/ AAA. Diversification helps further reduce risk.
Smart Choice for Short-Term Holding
Ideal for investors looking to park funds for short to medium durations. Debt mutual funds offer predictable and steady returns with the flexibility of easy entry and exit.
Professionally Managed by Top AMCs
Actively managed by experienced fund managers from reputed Asset Management Companies (AMCs) like HDFC, ICICI, Nippon Life, who optimize your portfolio to balance risk and reward so you don’t have to.
- Past Returns: Look for consistent performance across 1, 3, and 5 years. This helps assess the fund’s stability and ability to deliver returns in varying market conditions.
- Expense Ratio: Lower is better. A low expense ratio means more of your returns are retained, boosting your overall long-term gains.
- Exit Load: If you plan to invest for shorter durations, choose funds with low or zero exit load to avoid unnecessary charges on early redemption.
- Modified Duration: For lower interest rate sensitivity, opt for funds with a shorter modified duration—they carry less risk during rate fluctuations.
- Fund Rating: Prefer highly rated funds (4-star or 5-star) by agencies like CRISIL or Morningstar, as they indicate strong past performance and better risk management
For your knowledge
OTHER OFFERINGS
Other Secured Fixed-Income Products By Grip Invest
Corporate Bonds
- Securities issued by corporates & NBFCs
- Up to 14% pre-tax YTM
- Start investing with Rs 1,000
- Exchange listed and credit rated
LeaseX
- Lease mission-critical assets to reputable companies
- Up to 14% pre-tax YTM
- Start investing with Rs 1,00,000
- SEBI/RBI complaint and credit rated
InvoiceX
- Loans backed by Invoice Discounting
- Up to 14% pre-tax YTM
- Start investing with Rs 1,00,000
- SEBI/RBI complaint and credit rated
LoanX
- Diverse pool of loans from top NBFCs
- Up to 14% pre-tax
- Start investing with Rs 1,00,000
- SEBI/RBI complaint and credit rated
Baskets
- Theme based investing
- Up to 14% pre-tax YTM
- Start investing with Rs 5,000
- SEBI/RBI complaint and credit rated
To help you
Frequently Asked Questions
How do Mutual Funds work?
What are the different types of Mutual Funds?
- Liquid Funds: Money market instruments with maturities up to 91 days. Liquid Funds tend to offer better returns than savings accounts and are a good alternative for short-term investment.
- Ultra Short-Term Funds: which invests in money market instruments and short-term debt securities, with an average investment duration of 3 to 6 months.
- Short-Term Debt Funds: which invests in money market instruments and debt securities, with an average investment duration of 1 to 3 years.
- Banking & PSU Fund: which invests at least 80% of its total assets in debt securities of PSUs (public sector undertakings) and banks.
- Government Bond Funds: Backed by the government; low risk
- Corporate Bond Funds: which invests a minimum of 80% of its total assets in corporate bonds having the highest ratings. These funds are good for investors with lower risk tolerance and seeking to invest in high-quality corporate bonds.
- Short-Term & Ultra Short-Term Funds: which invests in money market instruments and debt securities, with an average investment duration of 3 to 6 months.
- Credit Risk Funds: which invests a minimum of 65% of its investible corpus in corporate bonds having ratings of AA or below. Therefore, these funds carry an amount of credit risk and offer better returns than Corporate Bond Funds.
- Dynamic Bond Funds: which invests in debt instruments of varying maturities based on the interest rate regime. These funds are good for investors with moderate risk tolerance and an investment horizon of 3 to 5 years.
- Floating Rate Funds: which invests a minimum of 65% of its investible corpus in floating rate instruments. These funds carry a low interest-rate risk.
Do these funds offer monthly income?
Is there a cost involved while investing in mutual funds?
Are debt mutual funds better than equity funds?
How can I invest in mutual funds in India?
You can invest in mutual funds easily through Grip Invest. The platform offers carefully curated bond mutual funds with transparent returns and detailed risk insights. To get started, simply:
- Sign up on the Grip Invest website or app
- Complete your KYC using your PAN and bank details
- Explore and invest in mutual funds that match your risk-return profile
Grip simplifies the investment process and helps you make informed decisions with expert-curated options.
